California’s Truth in Labeling law faces federal suit

A federal lawsuit challenges California Senate Bill 343, known as the Truth in Labeling law, filed by a coalition of farmers, dairy product makers, restaurants, packaging manufacturers and grocers. The plaintiffs contend the law restricts free speech and will reduce recycling, confuse consumers, and increase costs for California families.

The suit was filed in the United States District Court for the Southern District of California and seeks a preliminary injunction to block enforcement. The law takes effect on October 4.

The plaintiffs argue that advancing a circular economy depends on clear consumer guidance about what is recyclable and how to recycle. They say the law would prevent producers from informing consumers about recyclability unless packaging satisfies state criteria that are rigid and arbitrary.

Dairy Institute of California executive director Katie Davey argues the law would force dairy product manufacturers to remove vital recycling guidance from packaging and would undermine the ability to deliver milk to families and schools, given limited recycling infrastructure.

The complaint asserts SB343 imposes a sweeping content based restriction on speech that bars producers from using widely recognized recycling symbols and statements unless packaging meets state criteria that do not reflect real world recycling capabilities or local program variation.

The complaint further claims the criteria are vague and difficult to apply, with the legality of a recyclable claim depending on decisions by numerous recycling program operators outside producer control.

The complaint contends SB343 will not advance recycling, arguing that consumer participation hinges on clear guidance at the point of disposal, and removing guidance could reduce participation and discourage investment in new recyclable materials and packaging innovations.

The plaintiffs are led by the Dairy Institute of California and include:

• Dairy Institute of California
• California Restaurant Association
• California Grocers Association
• Pet Food Institute
• SNAC International
• Californians for Affordable Packaging
• California League of Food Producers
• Flexible Packaging Association
• Print Creative Alliance
• Grower-Shipper Association of Central California
• California Table Grape Commission
• California Strawberry Commission
• California Apple Commission
• California Blueberry Commission
• Olive Oil Commission of California
• California Walnut Commission
• American Forest & Paper Association
• Western Growers Association

In response, the National Stewardship Action Council, a co sponsor of SB 343, says the legislation is a necessary step toward restoring integrity and trust in the recycling system, arguing that misleading recyclability claims contribute to consumer confusion, increased contamination and higher system costs. The council contends that labels should reflect real world outcomes to support recycling and domestic end markets.

NSAC maintains that recycling depends on design and disposal decisions, and that SB343 aligns recyclability claims with real world conditions and is consistent with longstanding legal precedent allowing governments to restrict misleading commercial claims. It cautions against false labeling on packaging.